CBAM (Carbon Border Adjustment Mechanism), is the EU’s trade policy tool to address climate change. The transition period (Oct 2023 – Dec 2025), during which reporting was required but no tariff applied, has ended. As of 1 January 2026, the definitive period has commenced, and CBAM costs are officially applicable.

Currently, CBAM covers six sectors: cement, aluminium, fertilisers, iron and steel, chemicals (hydrogen), and electricity. Whether an export product is subject to CBAM is determined by its CN code.

Furthermore, the European Commission also proposes extending CBAM to downstream products, planning to include 180 steel- and aluminium-intensive products, such as machinery and parts, automotive components, household appliances, electrical equipment, and metal products. This expansion is expected to take effect on 1 January 2028.

Carbon Newture supports companies with CBAM reporting, calculations, and other compliance services, helping ensure smooth participation in green trade.